The Authority to Act, explained.

Before any property manager in New Zealand can manage your rental, you sign an Authority to Act as Managing Agent — usually just called a management agreement. It's a short document with long consequences: it authorises another party to collect your rent, hold your money, instruct trades on your behalf and represent you at the Tenancy Tribunal. Most landlords skim it. You shouldn't.

What an Authority to Act typically authorises

The core authorities are similar across the industry: collecting rent and paying it to your nominated account; lodging bonds with Tenancy Services; carrying out routine inspections and providing reports; arranging maintenance and repairs (usually with a pre-agreed spending limit above which they need your approval); advertising and re-letting the property; issuing notices to tenants; and applying to the Tenancy Tribunal for breaches under the Residential Tenancies Act 1986.

Everything sits under the umbrella of the Act — no agreement can contract out of your legal obligations as a landlord, and a good agreement says so explicitly.

The eight questions to ask before you sign anyone's

1. What's the full fee schedule — not just the headline percentage? A low management percentage often travels with a crowd: letting or "new tenancy" fees, advertising charges, per-inspection fees, smoke alarm compliance fees, Tribunal application admin. Ask for every fee in writing, then run the real total through a fees comparison. An 8% headline with $700+ of annual add-ons can cost more than a 10% all-inclusive plan.

2. Can they increase fees during the agreement? Some agreements let the manager review fees with as little as one month's written notice. That means the price you signed isn't the price you're guaranteed. Look for the fee review clause and make sure you're comfortable with it.

3. What's the notice period to leave? Thirty to ninety days is common; some are shorter. Whatever it is, it should be stated plainly, work both ways, and not carry an exit penalty.

4. What's the maintenance approval threshold? The agreement should state the dollar limit under which the manager can act without calling you — and everything above it should require your approval. No threshold means no control.

5. Where does your money sit? Rent should be held in an audited trust account, separate from the company's operating funds, and paid to you on a stated frequency with an itemised monthly statement. "Audited" is the key word — ask when it was last audited and by whom.

6. How many inspections, and are they included? Agreements vary from one routine inspection a year to four — and some charge per inspection on top of the management fee. Know the number, and know whether it's inside or outside the percentage. (Your insurer may also require a minimum inspection frequency — check your landlord policy.)

7. Who pays for the Tribunal? If a tenancy goes wrong, is Tribunal preparation and representation included, charged hourly, or quoted per case? This is exactly the moment you don't want a surprise invoice.

8. What are they NOT liable for? Every agreement carves out liability — typically for tenant damage, unpaid rent and third-party actions. That's normal. What matters is that the carve-outs are clearly written, and that the manager carries professional indemnity insurance for the things they are responsible for. Ask for the cover amount.

How we approach it

Our own Authority to Act is written to pass this exact checklist: every fee published on our pricing page before you sign, an audited trust account, a stated maintenance threshold, and $1M professional indemnity cover behind the service. We'll happily walk you through our agreement line by line in a free consultation — and we'd genuinely encourage you to put any other company's agreement through the same eight questions.

This guide is general information, not legal advice. For advice on a specific agreement, talk to your solicitor.